Credit Rating Agency Fitch Approves of Facebook’s Fiat

One of the big three credit rating agencies has recently given its thumbs up to Mark Zuckerberg’s foray into digital currencies dubbed as Libra.

The credit rating agency states that the potential advantage of Libra versus other cryptocurrencies is its full backing by a reserve basket of fiat currency assets managed in a reserve fund implemented like a currency board.

According to Fitch the social media’s giant will reap long-term benefits from its fiat-backed status as it could preserve price stability, avoiding the speculative nature of existing cryptocurrencies and improving its utility as a medium of exchange and a store of value.

Fitch also reports that Facebook’s cryptocurrency purportedly has noble intentions of serving the people that are unbanked or underserved by banks.

Libra Association estimates 1.7 billion adults, 1 billion of which have a mobile phone and 500 million has internet connection whom the association identified I can help by enabling them to transact with near costless transactions and remittances of amounts less than $1 and even approaching just a few cents.

Credit Rating Agency Fitch Approves of Facebook’s Fiat –Backed Libra

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